BILL NUMBER: AB 813	CHAPTERED  10/10/99

	CHAPTER   785
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 7, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 10, 1999
	PASSED THE SENATE   SEPTEMBER 9, 1999
	AMENDED IN SENATE   SEPTEMBER 7, 1999
	AMENDED IN SENATE   JUNE 22, 1999

INTRODUCED BY   Committee on Public Employees, Retirement and Social
Security (Correa (Chair), Firebaugh, Honda, Knox, and Pescetti)

                        FEBRUARY 24, 1999

   An act to amend Sections 20350, 20391, 21073.5, 21201, 21357,
21363, 21370, 21461, 21465, 21497, 21507, 21751, 22774, 22970.2,
75101, 75520, 75521, and 75523 of, to add Section 22013.77 to, and to
repeal Sections 20417, 20736, and 20992 of, the Government Code,
relating to retirement.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 813, Committee on Public Employees, Retirement and Social
Security.  Public Employees' and Judges' Retirement Systems:
benefits: administration.
   (1) Under the Public Employees' Retirement Law, if a member
retires from both the Public Employees' Retirement System and from a
county retirement system, the member's highest final compensation
from either system may be used to calculate his or her retirement
allowance if the member retires from both systems concurrently.
Existing law also provides that if a member on deferred retirement
from PERS retires from a county retirement system between the ages of
50 and 55, when that member subsequently becomes eligible to retire
from PERS, the member shall be deemed to have retired from both
systems concurrently for purposes of computing final compensation.
   This bill would instead provide that when a member on deferred
retirement from PERS retires, at any eligible age, from a reciprocal
county retirement system, he or she shall be deemed to have retired
from both systems concurrently for purposes of computing final
compensation.
   (2) Under existing law, if a member of the Public Employees'
Retirement System goes on an unpaid or military leave of absence for
6 or more months, the member can request a refund of his or her
accumulated contributions.
   This bill would repeal these provisions.
   (3) Under the Public Employees' Retirement Law, a member of State
Bargaining Unit 6 who retires on or after January 1, 1999, may elect
to receive a lump-sum distribution of up to 50% of the actuarial
present value of his or her retirement allowance.  Existing law also
provides a formula for calculation of retirement benefits for a
member who retires after being reinstated from service or disability
retirement.
   This bill would provide that the lump-sum distribution shall be
not less than 20% of the actuarial present value of the member's
retirement allowance and would also specify that the portion of the
member's retirement allowance that is subject to survivor continuance
benefits may not be distributed as, or a portion of, the lump-sum
distribution.  The bill would also make the formula for retirement
benefits following reinstatement applicable to a member who retires
following reinstatement from a service or disability retirement when
the member elected the lump-sum distribution.
   (4) Under the Public Employees' Retirement Law, contracting public
agencies may elect one of specified formulas for calculation of
retirement allowances for local safety members.
   This bill would provide that 2 of the specified formulas shall not
be available to local safety employees of public agencies who enter
into contracts after January 1, 2000.
   (5) Existing law, the Public Employees' Retirement Law, provides
that those officers and employees who are members of State Bargaining
Unit 16 or 19 and whose classifications or positions are found to
meet specified state safety criteria shall be included within the
classification of state safety officers, if the Department of
Personnel Administration has agreed to their inclusion.
   This bill would authorize those officers and employees who are so
included in that classification, and specified retirees and
beneficiaries, to elect to receive credit under that classification
for their past Second Tier retirement service, as specified.
   (6) The Judges' Retirement System II Law prescribes specified
annual cost-of-living increases for the monthly service retirement
allowances of retired judges and provides that a judge's account is
credited monthly with interest at a rate equal to the net earning
rate achieved by the retirement system fund on its investments during
the preceding fiscal year.
   This bill would provide those cost-of-living increases for judges'
disability retirement allowances, clarify that the interest rate
shall not be less than zero, and make other technical changes.
   (7) Under the Public Employees' Medical and Hospital Care Act, the
member of the Board of Administration of the Public Employees'
Retirement System who is an officer of a life insurer may not vote on
whether the board shall approve a health benefit plan or contract
with a carrier.
   This bill would permit that board member to vote on those matters
so long as he or she has no financial interest therein, as specified.

   (8) This bill would make other technical changes.
   (9) The bill would incorporate additional changes to Section 20391
of the Government Code, made by this bill and SB 400 to take effect
only if both bills are enacted and this bill is enacted last.
   (10) The bill would incorporate additional changes to Section
21363 of the Government Code, made by this bill and SB 400 and SB 800
to take effect only if this bill and either or both of the other
bills are enacted and this bill is enacted last.
   (11) The bill would incorporate additional changes to Section
21370 of the Government Code, made by this bill and SB 800 to take
effect only if both bills are enacted and this bill is enacted last.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 20350 of the Government Code is amended to
read:
   20350.  Notwithstanding Section 20638, if a member on deferred
retirement from this system is eligible to retire for service from a
reciprocal retirement system and does so retire prior to the time the
member becomes entitled to retire under this system, his or her
retirement shall be deemed a concurrent retirement for purposes of
computing final compensation under Section 20638.
  SEC. 2.  Section 20391 of the Government Code is amended to read:
   20391.  "State peace officer/firefighter member" means:
   (a) All persons in the Board of Prison Terms, the Department of
Consumer Affairs, the Department of Developmental Services, the
Department of Health Services, the Department of Toxic Substances
Control, the Horse Racing Board, the Department of Industrial
Relations, the Department of Insurance, the Department of Mental
Health, the Department of Motor Vehicles, the Department of Social
Services employed with the class title of Special Investigator (Class
Code 8553), Senior Special Investigator (Class Code 8550), and
Investigator Assistant (Class Code 8554) who have been designated as
peace officers as defined in Sections 830.2 and 830.3 of the Penal
Code.
   (b) All persons in the Department of Alcoholic Beverage Control
employed with the class title Investigator Trainee, Alcoholic
Beverage Control (Class Code 7553), Investigator I, Alcoholic
Beverage Control, Range A and B (Class Code 7554), and Investigator
II, Alcoholic Beverage Control (Class Code 7555) who have been
designated as peace officers as defined in Sections 830.2 and 830.3
of the Penal Code.
   (c) All persons within the Department of Justice who are state
employees as defined in subdivision (c) of Section 3513 and who have
been designated as peace officers and performing investigative
duties.
   (d) All persons in the Department of Parks and Recreation employed
with the class title of Park Ranger (Intermittent) (Class Code 0984)
who have been designated as peace officers as defined in Sections
830.2 and 830.3 of the Penal Code.  Any person so designated may
elect, within 90 days of notification by the board, to remain subject
to the service retirement benefit and normal rate of contribution
applicable prior to July 3, 1984, by filing an irrevocable notice of
election with the board.  A member who so elects shall be subject to
the reduced benefit factors specified in Section 21353 only for
service also included in the federal system.
   (e) All persons in the Franchise Tax Board who have been
designated as peace officers in subdivision (s) of Section 830.3 of
the Penal Code.  A member who is reclassified from state
miscellaneous to state peace officer/firefighter pursuant to this
subdivision may make an irrevocable election in writing to remain
subject to the miscellaneous service retirement benefit and the
normal rate of contribution by filing a notice of election with the
board within 90 days of notification by the board.  A member who so
elects shall be subject to the reduced benefit factors specified in
Section 21353 only for service included in the federal system.
  SEC. 2.5.  Section 20391 of the Government Code is amended to read:

   20391.  "State peace officer/firefighter member" means:
   (a) All persons in the Board of Prison Terms, the Department of
Consumer Affairs, the Department of Developmental Services, the
Department of Health Services, the Department of Toxic Substances
Control, the Horse Racing Board, the Department of Industrial
Relations, the Department of Insurance, the Department of Mental
Health, the Department of Motor Vehicles, the Department of Social
Services employed with the class title of Special Investigator (Class
Code 8553), Senior Special Investigator (Class Code 8550), and
Investigator Assistant (Class Code 8554) who have been designated as
peace officers as defined in Sections 830.2 and 830.3 of the Penal
Code.
   (b) All persons in the Department of Alcoholic Beverage Control
employed with the class title Investigator Trainee, Alcoholic
Beverage Control (Class Code 7553), Investigator I, Alcoholic
Beverage Control, Range A and B (Class Code 7554), and Investigator
II, Alcoholic Beverage Control (Class Code 7555) who have been
designated as peace officers as defined in Sections 830.2 and 830.3
of the Penal Code.
   (c) All persons within the Department of Justice who are state
employees as defined in subdivision (c) of Section 3513 and who have
been designated as peace officers and performing investigative
duties.
   (d) All persons in the Department of Parks and Recreation employed
with the class title of Park Ranger (Intermittent) (Class Code 0984)
who have been designated as peace officers as defined in Sections
830.2 and 830.3 of the Penal Code.
   (e) All persons in the Franchise Tax Board who have been
designated as peace officers in subdivision (s) of Section 830.3 of
the Penal Code.
   (f) A member who is employed in a position that is reclassified to
state peace officer/firefighter pursuant to this section may make an
irrevocable election in writing to remain subject to the service
retirement benefit and the normal rate of contribution applicable
prior to reclassification by filing a notice of election with the
board within 90 days of notification by the board.  A member who so
elects shall be subject to the reduced benefit factors specified in
Section 21353 or 21354.1, as applicable, only for service included in
the federal system.
  SEC. 3.  Section 20417 of the Government Code is repealed.
  SEC. 4.  Section 20736 of the Government Code is repealed.
  SEC. 5.  Section 20992 of the Government Code is repealed.
  SEC. 6.  Section 21073.5 of the Government Code is amended to read:

   21073.5.  (a) A state Second Tier member, who meets the
eligibility definition prescribed in subdivision (c) of Section 21071
may elect to be subject to Section 21353.5 at any time while he or
she is in the employment of the state.  Upon becoming subject to
Section 21353.5, the active member may elect to have his or her past
Second Tier service credited under Section 21353.5.
   (b) (1) Notwithstanding any other provision of this article, a
member designated as a state safety member pursuant to Section
20405.1 or 20405.3 may elect to have past Second Tier service subject
to Section 21076 or 21077 credited under Section 21353.5.  This
election may be made at any time while the member is employed by the
state, subject to election procedures to be established and
communicated by the board.
   (2) The election described in paragraph (1) shall also be provided
to a member designated as a state safety member pursuant to Section
20405.1 or 20405.3 who retired before the date the election was
actually made available by the board.
   (3) The election described in paragraph (1) shall also be provided
to the beneficiary eligible for a continuing allowance upon the
death of a member, provided the member had been designated as a state
safety member pursuant to Section 20405.1 or 20405.3 but had died
before making the election that would have been provided by the
board.
   (4) The election described in paragraph (2) or (3) shall be made
within 60 days after the mailing date on the election notice sent by
the board to the retired member or the member's beneficiary.
   (c) A member or beneficiary who elects to receive credit for past
service shall pay all reasonable administrative costs and the amount
that will be equivalent to the difference between the actuarial
present value of the Second Tier service that had accrued to the
member's credit and the actuarial present value for the same service
had it been credited under Section 21353.5, including interest if
deemed necessary, in accordance with the method to be established by
the board.  The amount shall be contributed in a lump sum or by
installments over a period and subject to minimum payments as may be
prescribed by regulations of the board.  Payments for administrative
costs shall be credited to the current appropriation for support of
the board and available for expenditures by the board to fund
positions deemed necessary by the board to implement this section.
  SEC. 7.  Section 21201 of the Government Code is amended to read:
   21201.  When any person is reinstated from industrial disability
retirement under Sections 21191 and 21197, his or her retirement
allowance shall be canceled immediately, and he or she shall become a
member of this system as of the date of reinstatement.  His or her
individual account shall be credited with an amount that is the
actuarial equivalent of his or her annuity at the date of
reinstatement, not to exceed the amount of his or her accumulated
contributions as it was at the date of retirement.  Upon subsequent
retirement, the board shall resume the payment of his or her previous
industrial disability retirement allowance using the highest
compensation earnable during any period of membership,
notwithstanding Section 20036, to recalculate the industrial
disability retirement allowance.  The member shall receive, in
addition to the disability retirement allowance from the employment
in which he or she was granted the industrial disability retirement,
an annuity purchased with his or her accumulated normal contributions
made in respect to other employment covered by this system.  If the
member is qualified for service retirement, he or she shall receive
his or her service retirement allowance, in lieu of the industrial
retirement allowance, if the service retirement allowance is greater.

  SEC. 8.  Section 21357 of the Government Code is amended to read:
   21357.  (a) For a member reinstated from service retirement or
partial service retirement, the current service pension, or current
and prior service pensions, as the case may be, upon his or her
service retirement subsequent to the reinstatement, shall be the sum
of (1) a current service pension calculated on the basis of service
rendered after reinstatement in accordance with the formula
applicable to him or her in that service and membership, plus, (2) if
the subsequent retirement occurs before he or she renders, after his
or her reinstatement, at least one year of state service credited
under this system, or if the subsequent service or disability
retirement occurs after his or her reinstatement from service or
disability retirement pursuant to an election under Section 21465 or
21465.5, his or her current service pension, or current and prior
service pensions, as the case may be, as it was prior to his or her
reinstatement, adjusted for any service on which the pension was
based that was included in coverage of the federal system during
reinstatement according to the formula applicable to the service in
employment for which he or she was retired, and further adjusted
according to any change after reinstatement in the provisions
governing the calculation of his or her pension that would have
applied to him or her had he or she continued in retirement but been
subject to the formula applied in the first adjustment; or, for state
miscellaneous and state industrial service subject to Section 21076,
in lieu of (2), plus (3) a current service pension, or current and
prior service pensions, as the case may be, as it would have been
prior to his or her reinstatement under the formula applicable to
Section 21076, adjusted for any service on which the pension was
based that was included in coverage of the federal system during
reinstatement according to the formula applicable to the service in
employment for which he or she was retired, and further adjusted
according to any change after reinstatement in the provisions
governing the calculations of his or her pension that would have
applied to him or her had he or she continued in retirement and been
subject to the formula applicable to Section 21076, or if he or she
has rendered one year or more of state service after reinstatement,
in lieu of (2) or (3), plus (4), a current service pension based on
current service rendered prior to reinstatement, calculated on the
basis of the formula currently applicable to the employment in which
the service was rendered but on the basis of an age taken to the
preceding completed quarter year but not less than the minimum
retirement age applicable to him or her at his or her last retirement
and determined by deducting from his or her age at his or her
subsequent retirement, the aggregate time during which he or she was
under retirement.  For a member reinstated from nonindustrial
disability retirement, the current service pension upon his or her
service retirement after attaining an age one year less than the
minimum age at which he or she could have retired without an
actuarial discount because of age in the employment from which he or
she was last retired, or upon his or her disability retirement after
attaining the minimum age, and subsequent to reinstatement, shall be
calculated in the manners described in the preceding sentence, but
the age determined upon subsequent retirement after rendering at
least one year of state service credited under this system shall not
be taken at less than one year less than the minimum age if the
subsequent retirement is for service, or the minimum age if the
retirement is for disability.
   (b) The current service pension otherwise payable under this
section to a member whose allowance prior to reinstatement was paid
pursuant to his or her election under Section 21461 shall be reduced
by the actuarial equivalent, on the date of retirement subsequent to
reinstatement, of the amount (converted as below), if any, by which:

   (1) The total amount paid in the period during which a temporary
annuity was included in the payments, reduced by the total amount
that would have been payable during that period had the election not
been made, exceeds
   (2) The excess of the total amount that would have been payable,
had the election not been made, during the time subsequent to that
period and prior to reinstatement, over the total amount actually
paid during that time.
   The amount determined by the above formula shall be converted to
an amount equaling the actuarial equivalent on the date of
reinstatement and this latter amount shall be the basis of the
actuarial equivalent on the date of retirement subsequent to
reinstatement.
   Actuarial equivalents required by this section shall be based on
the interest rate and mortality tables in use by this system on the
date of retirement subsequent to reinstatement.
   (c) Notwithstanding this section, or any other provision of this
part, the current service pension payable to any member subject to
this section who rendered one year or more of state service credited
under this system after reinstatement on retirement for service
subsequent to reinstatement from service retirement for any credited
service for which a current service pension was paid prior to
reinstatement shall not be less than the current service pension that
would be payable on the date of the subsequent retirement had the
member not been reinstated.  For state miscellaneous and state
industrial service subject to Section 21076, the current service
pension payable for any credited service for which a current service
pension was paid prior to reinstatement shall not be less than the
current service pension that would have been payable on the date of
the subsequent retirement had the member's retirement been subject to
the formula under Section 21076 and had not been reinstated,
adjusted, however, by any reduction under this section because of an
election under Section 21461 and, for any service so credited that
was included in coverage of the federal system during reinstatement,
according to the formula applicable to the service in employment from
which he or she was retired.
  SEC. 9.  Section 21363 of the Government Code is amended to read:
   21363.  (a) The combined current and prior service pensions for
state peace officer/firefighter members subject to this section with
respect to state peace officer/firefighter service and the combined
current and prior service pensions for local safety members with
respect to local safety service rendered to a contracting agency that
is subject to this section is a pension derived from the
contributions of the employer sufficient when added to the service
retirement annuity that is derived from the accumulated normal
contributions of the state peace officer/firefighter member at the
date of his or her retirement to equal the fraction of one-fiftieth
of his or her final compensation set forth opposite his or her age at
retirement taken to the preceding completed quarter year, in the
following table, multiplied by the number of years of state peace
officer/firefighter service subject to this section with which he or
she is credited at retirement.


  Age at
Retirement                                  Fraction
   50 ...................................    1.0000
   50 1/4 ...............................    1.0125
   50 1/2 ...............................    1.0250
   50 3/4 ...............................    1.0375
   51 ...................................    1.0500
   51 1/4 ...............................    1.0625
   51 1/2 ...............................    1.0750
   51 3/4 ...............................    1.0875
   52 ...................................    1.1000
   52 1/4 ...............................    1.1125
   52 1/2 ...............................    1.1250
   52 3/4 ...............................    1.1375
   53 ...................................    1.1500
   53 1/4 ...............................    1.1625
   53 1/2 ...............................    1.1750
   53 3/4 ...............................    1.1875
   54 ...................................    1.2000
   54 1/4 ...............................    1.2125
   54 1/2 ...............................    1.2250
   54 3/4 ...............................    1.2375
   55 and over ..........................    1.2500

   (b) In no event shall the current service pension and the combined
current and prior service pensions under this section for all
service to all employers exceed an amount that, when added to the
service retirement annuity related to that service, equals 75 percent
of final compensation.  For state members who retire on or after
January 1, 1995, and with respect to service for all state employers
under this section, the benefit shall not exceed 80 percent of final
compensation.  If the pension relates to service to more than one
employer, or this section and Section 21369, and would otherwise
exceed that maximum, the pension payable with respect to each section
or employer shall be reduced in the same proportion as the allowance
bears to the total allowance computed as though there were no limit,
so that the total of the pensions shall equal the maximum.  Where a
state member retiring on or after January 1, 1995, has service under
this section with both state and local agency employers, the
80-percent limit shall apply and the additional benefit shall be
funded by increasing the member's pension payable with respect to the
state employer.
   (c) The Legislature reserves, with respect to any member subject
to this section, the right to provide for the adjustment of
industrial disability retirement allowances because of earnings of a
retired person and modification of the conditions and qualifications
required for retirement for disability as it may find appropriate
because of the earlier age of service retirement made possible by the
benefits under this section.
   (d) This section may be applied to related supervisory classes or
confidential positions for the respective bargaining units specified
in this section.
   (e) (1) This section shall be operative with respect to state
peace officer/firefighter members in Corrections Bargaining Unit No.
6, Protective Services and Public Safety Bargaining Unit No. 7, or
Firefighters Bargaining Unit No. 8, in accordance with a memorandum
of understanding reached between the state and the exclusive
bargaining agent in the respective unit pursuant to Chapter 10.3
(commencing with Section 3512) of Division 4 of Title 1.
   (2) This section also shall be operative with respect to the state
peace officer/firefighter members employed by a California State
University police department who are in Public Safety Unit No. 8 in
accordance with a memorandum of understanding reached between the
Trustees of the California State University and the recognized
employee organization pursuant to Chapter 12 (commencing with Section
3560) of Division 4 of Title 1.
   (3) This section shall also be operative with respect to a "state
peace officer/firefighter member" defined in subdivision (a) of
Section 20396 if authorized by, and in accordance with, a memorandum
of understanding reached between the Trustees of the California State
University and the recognized employee organization pursuant to
Chapter 12 (commencing with Section 3560) of Division 4 of Title 1.
   (4) Nothing in this section or in any other provision of law
affected by Chapter 1320 of the Statutes of 1984 or Chapter 234 of
the Statutes of 1986 shall be construed as authorizing any future
negotiation with respect to whether or not any bargaining unit
specified in this section whose memorandum of understanding was
previously approved by the Legislature pursuant to law and this
section, shall continue to remain within the state peace
officer/firefighter membership category.
   (5) The operative date of this section with respect to members in
each of the bargaining units specified in this section shall be as
provided for in the memorandum of understanding.
   (6) This section shall not apply to a person whose effective date
of retirement is prior to the operative date of this section with
respect to the bargaining unit of the person.
   (f) This section shall be known as, and may be cited as the State
Peace Officers' and Fire Fighters' Retirement Act.
   (g) The Legislature reserves the right to subsequently modify or
amend this part in order to completely effectuate the intent and
purposes of this section and the right to not provide any new
comparable advantages if disadvantages to employees result from any
modification or amendment.
   (h) This section shall not apply to a contracting agency nor its
employees until, first, it is agreed to in a written memorandum of
understanding entered into by an employer and representatives of
employees and, second, the contracting agency elects to be subject to
it by amendment to its contract made in the manner prescribed for
approval of contracts or in the case of a new contract, by express
provision of the contract.  The operative date of this section with
respect to a local safety member shall be the effective date of the
amendment to his or her employer's contract electing to be subject to
this section.  However, this section shall not apply to any local
safety member in the employ of an employer not subject to this
section on January 1, 2000.
  SEC. 9.2.  Section 21363 of the Government Code is amended to read:

   21363.  (a) The combined current and prior service pensions for
state peace officer/firefighter members subject to this section with
respect to state peace officer/firefighter service and the combined
current and prior service pensions for local safety members with
respect to local safety service rendered to a contracting agency that
is subject to this section is a pension derived from the
contributions of the employer sufficient when added to the service
retirement annuity that is derived from the accumulated normal
contributions of the state peace officer/firefighter member at the
date of his or her retirement to equal the fraction of one-fiftieth
of his or her final compensation set forth opposite his or her age at
retirement taken to the preceding completed quarter year, in the
following table, multiplied by the number of years of state peace
officer/firefighter service subject to this section with which he or
she is credited at retirement.


  Age at
Retirement                                  Fraction
   50 ...................................    1.0000
   50 1/4 ...............................    1.0125
   50 1/2 ...............................    1.0250
   50 3/4 ...............................    1.0375
   51 ...................................    1.0500
   51 1/4 ...............................    1.0625
   51 1/2 ...............................    1.0750
   51 3/4 ...............................    1.0875
   52 ...................................    1.1000
   52 1/4 ...............................    1.1125
   52 1/2 ...............................    1.1250
   52 3/4 ...............................    1.1375
   53 ...................................    1.1500
   53 1/4 ...............................    1.1625
   53 1/2 ...............................    1.1750
   53 3/4 ...............................    1.1875
   54 ...................................    1.2000
   54 1/4 ...............................    1.2125
   54 1/2 ...............................    1.2250
   54 3/4 ...............................    1.2375
   55 and over ..........................    1.2500

   (b) In no event shall the current service pension and the combined
current and prior service pensions under this section for all
service to all employers exceed an amount that, when added to the
service retirement annuity related to that service, equals 75 percent
of final compensation.  For state members who retire on or after
January 1, 1995, and with respect to service for all state employers
under this section, the benefit shall not exceed 80 percent of final
compensation.  If the pension relates to service to more than one
employer, or this section and Section 21369, and would otherwise
exceed that maximum, the pension payable with respect to each section
or employer shall be reduced in the same proportion as the allowance
bears to the total allowance computed as though there were no limit,
so that the total of the pensions shall equal the maximum.  Where a
state member retiring on or after January 1, 1995, has service under
this section with both state and local agency employers, the
80-percent limit shall apply and the additional benefit shall be
funded by increasing the member's pension payable with respect to the
state employer.
   (c) The Legislature reserves, with respect to any member subject
to this section, the right to provide for the adjustment of
industrial disability retirement allowances because of earnings of a
retired person and modification of the conditions and qualifications
required for retirement for disability as it may
                         find appropriate because of the earlier age
of service retirement made possible by the benefits under this
section.
   (d) This section may be applied to related supervisory classes or
confidential positions for the respective bargaining units specified
in this section.
   (e) (1) This section shall be operative with respect to state
peace officer/firefighter members in Corrections Bargaining Unit No.
6, Protective Services and Public Safety Bargaining Unit No. 7, or
Firefighters Bargaining Unit No. 8, in accordance with a memorandum
of understanding reached between the state and the exclusive
bargaining agent in the respective unit pursuant to Chapter 10.3
(commencing with Section 3512) of Division 4 of Title 1.
   (2) This section also shall be operative with respect to the state
peace officer/firefighter members employed by a California State
University police department who are in Public Safety Unit No. 8 in
accordance with a memorandum of understanding reached between the
Trustees of the California State University and the recognized
employee organization pursuant to Chapter 12 (commencing with Section
3560) of Division 4 of Title 1.
   (3) This section shall also be operative with respect to a "state
peace officer/firefighter member" defined in subdivision (a) of
Section 20396 if authorized by, and in accordance with, a memorandum
of understanding reached between the Trustees of the California State
University and the recognized employee organization pursuant to
Chapter 12 (commencing with Section 3560) of Division 4 of Title 1.
   (4) Nothing in this section or in any other provision of law
affected by Chapter 1320 of the Statutes of 1984 or Chapter 234 of
the Statutes of 1986 shall be construed as authorizing any future
negotiation with respect to whether or not any bargaining unit
specified in this section whose memorandum of understanding was
previously approved by the Legislature pursuant to law and this
section, shall continue to remain within the state peace
officer/firefighter membership category.
   (5) The operative date of this section with respect to members in
each of the bargaining units specified in this section shall be as
provided for in the memorandum of understanding.
   (6) With the exception of state peace officer/firefighter members
for service rendered for the Legislature or judicial branch of
government, this section shall apply to state peace
officer/firefighter members who are not employed by the state on or
after January 1, 2000.
   (f) This section shall be known as, and may be cited as the State
Peace Officers' and Fire Fighters' Retirement Act.
   (g) The Legislature reserves the right to subsequently modify or
amend this part in order to completely effectuate the intent and
purposes of this section and the right to not provide any new
comparable advantages if disadvantages to employees result from any
modification or amendment.
   (h) This section shall not apply to a contracting agency nor its
employees until, first, it is agreed to in a written memorandum of
understanding entered into by an employer and representatives of
employees and, second, the contracting agency elects to be subject to
it by amendment to its contract made in the manner prescribed for
approval of contracts or in the case of a new contract, by express
provision of the contract.  The operative date of this section with
respect to a local safety member shall be the effective date of the
amendment to his or her employer's contract electing to be subject to
this section.  However, this section shall not apply to any local
safety member in the employ of an employer not subject to this
section on January 1, 2000.
  SEC. 9.4.  Section 21363 of the Government Code is amended to read:

   21363.  (a) The combined current and prior service pensions for
state peace officer/firefighter members subject to this section with
respect to state peace officer/firefighter service and the combined
current and prior service pensions for local safety members with
respect to local safety service rendered to a contracting agency that
is subject to this section is a pension derived from the
contributions of the employer sufficient when added to the service
retirement annuity that is derived from the accumulated normal
contributions of the state peace officer/firefighter member at the
date of his or her retirement to equal the fraction of one-fiftieth
of his or her final compensation set forth opposite his or her age at
retirement taken to the preceding completed quarter year, in the
following table, multiplied by the number of years of state peace
officer/firefighter service subject to this section with which he or
she is credited at retirement.


  Age at
Retirement                                  Fraction
   50 ...................................    1.0000
   50 1/4 ...............................    1.0125
   50 1/2 ...............................    1.0250
   50 3/4 ...............................    1.0375
   51 ...................................    1.0500
   51 1/4 ...............................    1.0625
   51 1/2 ...............................    1.0750
   51 3/4 ...............................    1.0875
   52 ...................................    1.1000
   52 1/4 ...............................    1.1125
   52 1/2 ...............................    1.1250
   52 3/4 ...............................    1.1375
   53 ...................................    1.1500
   53 1/4 ...............................    1.1625
   53 1/2 ...............................    1.1750
   53 3/4 ...............................    1.1875
   54 ...................................    1.2000
   54 1/4 ...............................    1.2125
   54 1/2 ...............................    1.2250
   54 3/4 ...............................    1.2375
   55 and over ..........................    1.2500

   (b) In no event shall the current service pension and the combined
current and prior service pensions under this section for all
service to all employers exceed an amount that, when added to the
service retirement annuity related to that service, equals 75 percent
of final compensation.  For state members who retire on or after
January 1, 1995, and with respect to service for all state employers
under this section except as provided in Sections 21363.5 and
21363.6, the benefit shall not exceed 80 percent of final
compensation.  For local members who retire on or after January 1,
2000, the benefit shall not exceed 85 percent of final compensation.
If the pension relates to service to more than one employer, or this
section and Section 21369, and would otherwise exceed that maximum,
the pension payable with respect to each section or employer shall be
reduced in the same proportion as the allowance bears to the total
allowance computed as though there were no limit, so that the total
of the pensions shall equal the maximum.  Where a state or local
member retiring on or after January 1, 1995, has service under this
section with both state and local agency employers including, but not
limited to, service subject to Section 21363.5 or 21363.6, the
higher maximum shall apply and the additional benefit, if any, shall
be funded by increasing the member's pension payable with respect to
the employer for whom the member performed the service subject to the
higher maximum.
   (c) The Legislature reserves, with respect to any member subject
to this section, the right to provide for the adjustment of
industrial disability retirement allowances because of earnings of a
retired person and modification of the conditions and qualifications
required for retirement for disability as it may find appropriate
because of the earlier age of service retirement made possible by the
benefits under this section.
   (d) This section may be applied to related supervisory classes or
confidential positions for the respective bargaining units specified
in this section.
   (e) (1) This section shall be operative with respect to state
peace officer/firefighter members in Corrections Bargaining Unit No.
6, Protective Services and Public Safety Bargaining Unit No. 7, or
Firefighters Bargaining Unit No. 8, in accordance with a memorandum
of understanding reached between the state and the exclusive
bargaining agent in the respective unit pursuant to Chapter 10.3
(commencing with Section 3512) of Division 4 of Title 1.
   (2) This section also shall be operative with respect to the state
peace officer/firefighter members employed by a California State
University police department who are in Public Safety Unit No. 8 in
accordance with a memorandum of understanding reached between the
Trustees of the California State University and the recognized
employee organization pursuant to Chapter 12 (commencing with Section
3560) of Division 4 of Title 1.
   (3) This section shall also be operative with respect to a "state
peace officer/firefighter member" defined in subdivision (a) of
Section 20396 if authorized by, and in accordance with, a memorandum
of understanding reached between the Trustees of the California State
University and the recognized employee organization pursuant to
Chapter 12 (commencing with Section 3560) of Division 4 of Title 1.
   (4) Nothing in this section or in any other provision of law
affected by Chapter 1320 of the Statutes of 1984 or Chapter 234 of
the Statutes of 1986 shall be construed as authorizing any future
negotiation with respect to whether or not any bargaining unit
specified in this section whose memorandum of understanding was
previously approved by the Legislature pursuant to law and this
section, shall continue to remain within the state peace
officer/firefighter membership category.
   (5) The operative date of this section with respect to members in
each of the bargaining units specified in this section shall be as
provided for in the memorandum of understanding.
   (6) This section shall not apply to a person whose effective date
of retirement is prior to the operative date of this section with
respect to the bargaining unit of the person.
   (f) This section shall be known as, and may be cited as the State
Peace Officers' and Fire Fighters' Retirement Act.
   (g) The Legislature reserves the right to subsequently modify or
amend this part in order to completely effectuate the intent and
purposes of this section and the right to not provide any new
comparable advantages if disadvantages to employees result from any
modification or amendment.
   (h) This section shall not apply to a contracting agency nor its
employees until, first, it is agreed to in a written memorandum of
understanding entered into by an employer and representatives of
employees and, second, the contracting agency elects to be subject to
it by amendment to its contract made in the manner prescribed for
approval of contracts or in the case of a new contract, by express
provision of the contract.  The operative date of this section with
respect to a local safety member shall be the effective date of the
amendment to his or her employer's contract electing to be subject to
this section.  However, this section shall not apply to any local
safety member in the employ of an employer not subject to this
section on January 1, 2000.
  SEC. 9.6.  Section 21363 of the Government Code is amended to read:

   21363.  (a) The combined current and prior service pensions for
state peace officer/firefighter members subject to this section with
respect to state peace officer/firefighter service and the combined
current and prior service pensions for local safety members with
respect to local safety service rendered to a contracting agency that
is subject to this section is a pension derived from the
contributions of the employer sufficient when added to the service
retirement annuity that is derived from the accumulated normal
contributions of the state peace officer/firefighter member at the
date of his or her retirement to equal the fraction of one-fiftieth
of his or her final compensation set forth opposite his or her age at
retirement taken to the preceding completed quarter year, in the
following table, multiplied by the number of years of state peace
officer/firefighter service subject to this section with which he or
she is credited at retirement.


  Age at
Retirement                                  Fraction
   50 ...................................    1.0000
   50 1/4 ...............................    1.0125
   50 1/2 ...............................    1.0250
   50 3/4 ...............................    1.0375
   51 ...................................    1.0500
   51 1/4 ...............................    1.0625
   51 1/2 ...............................    1.0750
   51 3/4 ...............................    1.0875
   52 ...................................    1.1000
   52 1/4 ...............................    1.1125
   52 1/2 ...............................    1.1250
   52 3/4 ...............................    1.1375
   53 ...................................    1.1500
   53 1/4 ...............................    1.1625
   53 1/2 ...............................    1.1750
   53 3/4 ...............................    1.1875
   54 ...................................    1.2000
   54 1/4 ...............................    1.2125
   54 1/2 ...............................    1.2250
   54 3/4 ...............................    1.2375
   55 and over ..........................    1.2500

   (b) In no event shall the current service pension and the combined
current and prior service pensions under this section for all
service to all employers exceed an amount that, when added to the
service retirement annuity related to that service, equals 75 percent
of final compensation.  For state members who retire on or after
January 1, 1995, and with respect to service for all state employers
under this section except as provided in Sections 21363.5 and
21363.6, the benefit shall not exceed 80 percent of final
compensation.  For local members who retire on or after January 1,
2000, the benefit shall not exceed 85 percent of final compensation.
If the pension relates to service to more than one employer, or this
section and Section 21369, and would otherwise exceed that maximum,
the pension payable with respect to each section or employer shall be
reduced in the same proportion as the allowance bears to the total
allowance computed as though there were no limit, so that the total
of the pensions shall equal the maximum.  Where a state or local
member retiring on or after January 1, 1995, has service under this
section with both state and local agency employers including, but not
limited to, service subject to Section 21363.5 or 21363.6, the
higher maximum shall apply and the additional benefit, if any, shall
be funded by increasing the member's pension payable with respect to
the employer for whom the member performed the service subject to the
higher maximum.
   (c) The Legislature reserves, with respect to any member subject
to this section, the right to provide for the adjustment of
industrial disability retirement allowances because of earnings of a
retired person and modification of the conditions and qualifications
required for retirement for disability as it may find appropriate
because of the earlier age of service retirement made possible by the
benefits under this section.
   (d) This section may be applied to related supervisory classes or
confidential positions for the respective bargaining units specified
in this section.
   (e) (1) This section shall be operative with respect to state
peace officer/firefighter members in Corrections Bargaining Unit No.
6, Protective Services and Public Safety Bargaining Unit No. 7, or
Firefighters Bargaining Unit No. 8, in accordance with a memorandum
of understanding reached between the state and the exclusive
bargaining agent in the respective unit pursuant to Chapter 10.3
(commencing with Section 3512) of Division 4 of Title 1.
   (2) This section also shall be operative with respect to the state
peace officer/firefighter members employed by a California State
University police department who are in Public Safety Unit No. 8 in
accordance with a memorandum of understanding reached between the
Trustees of the California State University and the recognized
employee organization pursuant to Chapter 12 (commencing with Section
3560) of Division 4 of Title 1.
   (3) This section shall also be operative with respect to a "state
peace officer/firefighter member" defined in subdivision (a) of
Section 20396 if authorized by, and in accordance with, a memorandum
of understanding reached between the Trustees of the California State
University and the recognized employee organization pursuant to
Chapter 12 (commencing with Section 3560) of Division 4 of Title 1.
   (4) Nothing in this section or in any other provision of law
affected by Chapter 1320 of the Statutes of 1984 or Chapter 234 of
the Statutes of 1986 shall be construed as authorizing any future
negotiation with respect to whether or not any bargaining unit
specified in this section whose memorandum of understanding was
previously approved by the Legislature pursuant to law and this
section, shall continue to remain within the state peace
officer/firefighter membership category.
   (5) The operative date of this section with respect to members in
each of the bargaining units specified in this section shall be as
provided for in the memorandum of understanding.
   (6) With the exception of state peace officer/firefighter members
for service rendered for the Legislature or judicial branch of
government, this section shall apply to state peace
officer/firefighter members who are not employed by the state on or
after January 1, 2000.
   (f) This section shall be known as, and may be cited as the State
Peace Officers' and Fire Fighters' Retirement Act.
   (g) The Legislature reserves the right to subsequently modify or
amend this part in order to completely effectuate the intent and
purposes of this section and the right to not provide any new
comparable advantages if disadvantages to employees result from any
modification or amendment.
   (h) This section shall not apply to a contracting agency nor its
employees until, first, it is agreed to in a written memorandum of
understanding entered into by an employer and representatives of
employees and, second, the contracting agency elects to be subject to
it by amendment to its contract made in the manner prescribed for
approval of contracts or in the case of a new contract, by express
provision of the contract.  The operative date of this section with
respect to a local safety member shall be the effective date of the
amendment to his or her employer's contract electing to be subject to
this section.  However, this section shall not apply to any local
safety member in the employ of an employer not subject to this
section on January 1, 2000.
  SEC. 10.  Section 21370 of the Government Code is amended to read:

   21370.  (a) The combined prior and current service pension for
local safety members with respect to service to a contracting agency
subject to this section, upon retirement after attaining 56 years of
age, is a pension derived from contributions of an employer
sufficient, when added to that portion of the service retirement
annuity that is derived from the accumulated normal contributions of
the member at the date of his or her retirement, to equal
one-fiftieth of his or her final compensation set forth opposite his
or her age at retirement taken to the preceding completed quarter
year in the following table, multiplied by the number of years of
service credited to him or her as a local safety member subject to
this section at retirement.
   (b) Upon retirement for service prior to attaining 56 years of
age, the percentage of final compensation payable for each year of
credited service that is subject to this section shall be the product
of 2 percent multiplied by the factor set forth in the following
table for the actual age at retirement:


                                             The percent for
                                              each year of
                                             credited service
If retirement occurs at age:                       is:
     50 ................................          .8565
     50 1/4 ............................          .8650
     50 1/2 ............................          .8740
     50 3/4 ............................          .8830
     51 ................................          .8920
     51 1/4 ............................          .9020
     51 1/2 ............................          .9120
     51 3/4 ............................          .9222
     52 ................................          .9330
     52 1/4 ............................          .9410
     52 1/2 ............................          .9490
     52 3/4 ............................          .9570
     53 ................................          .9650
     53 1/4 ............................          .9675
     53 1/2 ............................          .9700
     53 3/4 ............................          .9725
     54 ................................          .9750
     54 1/4 ............................          .9810
     54 1/2 ............................          .9870
     54 3/4 ............................          .9935
     55 ................................         1.0000
     55 1/4 ............................         1.0435
     55 1/2 ............................         1.0870
     55 3/4 ............................         1.1310
     56 ................................         1.1750

   (c) This section shall apply only to local police officers and
county peace officers who are local safety members.
   (d) This section shall not apply to persons whose effective date
of retirement is prior to January 1, 1985.
   (e) The Legislature reserves, with respect to any member subject
to this section, the right to provide for the adjustment of
industrial disability retirement allowances because of earnings of a
retired person and modification of the conditions and qualifications
required for retirement for disability as it may find appropriate
because of the earlier age of service retirement made possible by the
benefits under this section.
   (f) The percentage of final compensation provided in this section
shall be reduced by one-third as applied to that part of the member's
final compensation that does not exceed four hundred dollars ($400)
per month for service after the effective date of coverage of a
member under the federal system.  This paragraph shall not apply to a
member who retires after the date upon which coverage under the
federal system of persons in his or her employment terminates.
   (g) In no event shall the total pension for all service under this
section exceed an amount that, when added to the service retirement
annuity related to the service, equals 75 percent of final
compensation.  If the pension relates to service for more than one
employer and would otherwise exceed the maximum, the pension payable
with respect to each employer shall be reduced in the same proportion
as the allowance based on service to the employer bears to the total
allowance computed as though there were no limit, so that the total
of the pensions shall equal the maximum.
   (h) This section shall only apply as an optional contributory
retirement formula for this system for local safety groups whose
group participated in Federal Old Age and Survivors' Insurance
provisions of the Social Security Act on April 1983.
   (i) This section shall not apply to a contracting agency nor its
employees until the agency and the representative employee
organization agree by memorandum of understanding to be subject to it
by amendment to its contract made in the manner prescribed for
approval of contracts.  It shall also be required that the
representative employee organizations agree to be subject to this
provision.
   (j) The operative date of this section with respect to a local
safety member shall be the effective date of the amendment to the
employer's contract electing to be subject to this section.  However,
this section shall not apply to any local safety member in the
employ of an employer not subject to this section on January 1, 2000.

  SEC. 10.5.  Section 21370 of the Government Code is amended to
read:
   21370.  (a) The combined prior and current service pension for
local safety members with respect to service to a contracting agency
subject to this section, upon retirement after attaining 56 years of
age, is a pension derived from contributions of an employer
sufficient, when added to that portion of the service retirement
annuity that is derived from the accumulated normal contributions of
the member at the date of his or her retirement, to equal
one-fiftieth of his or her final compensation set forth opposite his
or her age at retirement taken to the preceding completed quarter
year in the following table, multiplied by the number of years of
service credited to him or her as a local safety member subject to
this section at retirement.
   (b) Upon retirement for service prior to attaining 56 years of
age, the percentage of final compensation payable for each year of
credited service that is subject to this section shall be the product
of 2 percent multiplied by the factor set forth in the following
table for the actual age at retirement:


                                             The percent for
                                              each year of
                                             credited service
If retirement occurs at age:                       is:
     50 ................................          .8565
     50 1/4 ............................          .8650
     50 1/2 ............................          .8740
     50 3/4 ............................          .8830
     51 ................................          .8920
     51 1/4 ............................          .9020
     51 1/2 ............................          .9120
     51 3/4 ............................          .9222
     52 ................................          .9330
     52 1/4 ............................          .9410
     52 1/2 ............................          .9490
     52 3/4 ............................          .9570
     53 ................................          .9650
     53 1/4 ............................          .9675
     53 1/2 ............................          .9700
     53 3/4 ............................          .9725
                                                          54
................................          .9750
     54 1/4 ............................          .9810
     54 1/2 ............................          .9870
     54 3/4 ............................          .9935
     55 ................................         1.0000
     55 1/4 ............................         1.0435
     55 1/2 ............................         1.0870
     55 3/4 ............................         1.1310
     56 ................................         1.1750

   (c) This section shall apply only to local police officers and
county peace officers who are local safety members.
   (d) This section shall not apply to persons whose effective date
of retirement is prior to January 1, 1985.
   (e) The Legislature reserves, with respect to any member subject
to this section, the right to provide for the adjustment of
industrial disability retirement allowances because of earnings of a
retired person and modification of the conditions and qualifications
required for retirement for disability as it may find appropriate
because of the earlier age of service retirement made possible by the
benefits under this section.
   (f) The percentage of final compensation provided in this section
shall be reduced by one-third as applied to that part of the member's
final compensation that does not exceed four hundred dollars ($400)
per month for service after the effective date of coverage of a
member under the federal system.  This paragraph shall not apply to a
member who retires after the date upon which coverage under the
federal system of persons in his or her employment terminates.
   (g) For members who retire prior to January 1, 2000, in no event
shall the total pension for all service under this section exceed an
amount that, when added to the service retirement annuity related to
the service, equals 75 percent of final compensation.  For members
who retire on or after January 1, 2000, the allowance shall not
exceed 85 percent of final compensation.  If the pension relates to
service for more than one employer and would otherwise exceed the
maximum, the pension payable with respect to each employer shall be
reduced in the same proportion as the allowance based on service to
the employer bears to the total allowance computed as though there
were no limit, so that the total of the pensions shall equal the
maximum.
   (h) This section shall only apply as an optional contributory
retirement formula for this system local safety groups whose group
participated in Federal Old Age and Survivors' Insurance provisions
of the Social Security Act on April 1983.
   (i) This section shall not apply to a contracting agency nor its
employees until the agency and the representative employee
organization agree by memorandum of understanding to be subject to it
by amendment to its contract made in the manner prescribed for
approval of contracts.  It shall also be required that the
representative employee organizations agree to be subject to this
provision.
   (j) The operative date of this section with respect to a local
safety member shall be the effective date of the amendment to the
employer's contract electing to be subject to this section.  However,
this section shall not apply to any local safety member in the
employ of an employer not subject to this section on January 1, 2000.

  SEC. 11.  Section 21461 of the Government Code is amended to read:

   21461.  (a) A member retiring for service may elect to have the
actuarial equivalent of his or her unmodified service retirement
allowance paid in two parts as follows:
   (1) A temporary annuity in an amount specified by the member but
which shall not result in a reduction to his or her unmodified
allowance by more than 50 percent.
   (2) A life income consisting of his or her service retirement
annuity plus the pension provided by the actuarial value of his or
her current and prior service pensions remaining after providing the
temporary annuity in paragraph (1).
   (b) The temporary annuity under subdivision (a) shall not be
subject to further optional settlement under this article and shall
be payable monthly as an addition to the member's monthly life income
beginning on his or her effective date of retirement and continuing
until the member reaches age 591/2 or any whole age between ages 60
and 68, as designated by the member at the time of his or her
retirement.  If his or her death occurs prior to that age, the
commuted value of any remaining installments shall be paid to his or
her designated beneficiary in a lump sum.
  SEC. 12.  Section 21465 of the Government Code is amended to read:

   21465.  Optional settlement 5 consists of a partial distribution
of the actuarial present value of the portion, as specified in this
section, of the member's unmodified monthly allowance, as prescribed
in Section 21363 or 21403.  The actuarial present value shall be
based upon the investment return and postretirement mortality
assumptions adopted by the board for that purpose.  The member may
elect to receive the actuarial present value of no less than 20
percent and no more than 50 percent of his or her unmodified
allowance.  The member may elect to receive the remaining portion of
the unmodified allowance, not distributed as a lump sum, under one of
the settlements specified in this article for the remainder of his
or her lifetime and thereafter to his or her designated beneficiary,
unless this amount is solely limited to the survivor continuance
portion.  Under no circumstances shall the portion of the unmodified
allowance equivalent to the survivor continuance pursuant to Section
21624 be distributed as, of, the lump sum. Under no circumstances
shall the benefits provided under this section exceed the benefits
that would have otherwise been provided under any other section in
this article.
   This section shall only apply to state peace officer/firefighter
members in State Bargaining Unit 6 who retire on and after January 1,
1999, as well as to state peace officer/firefighter members in
related supervisory and confidential positions, provided the
Department of Personnel Administration has approved their inclusion.

  SEC. 13.  Section 21497 of the Government Code is amended to read:

   21497.  If the total value of the benefit to be paid pursuant to
Section 21493, 21494, or 21506 is less than an amount determined by
the board, the benefit may be paid to the first member of the
entitled class of beneficiaries who files a claim.  If the total
value of the benefit pursuant to any of these sections exceeds the
amount established by the board but the number of qualifying
beneficiaries under these sections is such that any individual
benefit will be less than the amount established by the board, the
board shall limit the number of beneficiaries so that no individual's
benefit will be less than the amount established by the board.  The
board shall determine the recipients on the basis of the order in
which claims are made.
  SEC. 14.  Section 21507 of the Government Code is amended to read:

   21507.  Any lump-sum benefit, or any uncashed lump-sum death
benefit warrant, payable by this system to a beneficiary shall be
paid to the estate of the beneficiary if he or she dies prior to
payment of the benefit.  The benefit may be paid to a representative
of the deceased beneficiary's estate, upon demonstration by court
documents that the person is authorized to act in that capacity.  If
the estate does not require probate, and the deceased person was the
trustor of a trust, benefits may, in the judgment of the board, be
paid to the trustee as named in the trust.  If the estate is not
probated, and the beneficiary was not the trustor of a trust,
benefits shall be paid to the beneficiary's surviving next of kin, in
the order specified in Section 21493.
  SEC. 15.  Section 21751 of the Government Code is amended to read:

   21751.  The definitions in Part 3 (commencing with Section 20000)
shall apply to this part.  The following definition shall also govern
the interpretation of this part:
   "Participating agency" means any public agency that meets the
criteria for becoming a contracting agency in this system pursuant to
Chapter 5 (commencing with Section 20460) of Part 3, but that has
not elected to participate in this system as a contracting agency,
and that elects to contract with the board to participate in the
replacement benefit program administered pursuant to this part by the
board.
  SEC. 16.  Section 22013.77 is added to the Government Code, to
read:
   22013.77.  "Policeman," as used in this part, also includes
persons designated as peace officers by subdivision (e) of Section
20391 for the purposes of Section 218(d)(5)(A) of Title 42 of the
United States Code.
  SEC. 17.  Section 22774 of the Government Code is amended to read:

   22774.  The board shall, in accordance with this part, approve
health benefits plans and may contract with carriers offering health
benefits plans.
   Irrespective of the provisions of Sections 1090 and 1091 of this
code, the board member who is an officer of a life insurer may
participate in all board activities in administering the provisions
of this part, except that he or she shall not vote on the question of
whether a contract should be entered into or approval should be
given concerning any plan in which the board member has a financial
interest, as defined in the Political Reform Act of 1974 (Title 9
(commencing with Section 81000)).
  SEC. 18.  Section 22970.2 of the Government Code, as added by
Senate Bill 522 of the 1999-2000 Regular Session, is amended to read:

   22970.2.  The design and administration of the Supplemental
Contributions Program shall conform with the applicable provisions of
Title 26 of the United States Code and the Revenue and Taxation
Code.
  SEC. 19.  Section 75101 of the Government Code is amended to read:

   75101.  The Controller shall at the end of each month ascertain
the aggregate amount of the annual salaries of judges covered by the
system, and out of the General Fund he or she shall transfer monthly
into the Judges' Retirement Fund a sum equal to 8 percent of
one-twelfth of the aggregate amount of those salaries.
  SEC. 20.  Section 75520 of the Government Code is amended to read:

   75520.  (a) A judge shall, monthly, accrue monetary credits equal
to 18 percent of the judge's monthly salary.
   (b) To the total monetary credits in each judge's account, an
additional amount shall be credited monthly at a rate, not less than
zero, equal to the annual net earnings rate achieved by the Judges'
Retirement System II Fund on its investments of moneys in the Judges'
Retirement System II Fund during the preceding fiscal year.
  SEC. 21.  Section 75521 of the Government Code is amended to read:

   75521.  (a) A judge who leaves judicial office before accruing at
least five years of service shall be paid the amount of his or her
contributions to the system, and no other amount.
   (b) A judge who leaves judicial office after accruing five or more
years of service and who is not eligible to elect to retire under
Section 75522 shall be paid the amount of his or her monetary credits
determined pursuant to Section 75520, including the credits added
under subdivision (b) of that section computed to the last day of the
month preceding the date of distribution, and no other amount.
   (c) Judges who leave office as described in subdivision (b) are
"retired judges" for purposes of assignment pursuant to Article 2
(commencing with Section 66540) of Chapter 2 of this division and are
eligible for benefits provided under Section 22816.31.
   (d) After a judge has withdrawn his or her accumulated
contributions or the amount of his or her monetary credits upon
leaving judicial office, the service shall not count in the event he
or she later becomes a judge again, until he or she pays into the
Judges' Retirement System II Fund the amount withdrawn, plus interest
thereon at the rate of interest then being required to be paid by
members of the Public Employees' Retirement System under Section
20750 from the date of withdrawal to the date of payment.
  SEC. 22.  Section 75523 of the Government Code is amended to read:

   75523.  (a) The retirement allowance of retired judges who have
elected to receive a monthly allowance under subdivision (d) of
Section 75522 or who have retired for disability and are receiving an
allowance under Section 75560.4 shall be adjusted effective in
January of each year after a judge has been retired under this
chapter for more than six months, to reflect any increase in the cost
of living occurring after January 1 of the immediately preceding
fiscal year.  The United States city average of the "Consumer Price
Index for all Urban Consumers," as published by the United States
Bureau of Statistics, shall be used as the basis for determining
changes in the cost of living.
   (b) No adjustment shall be made unless the cost-of-living increase
equals or exceeds 1 percent.  The allowance shall not be increased
more than 3 percent in a single year.  Increases shall be compounded.

   (c) The allowance shall not be decreased as a result of the
cost-of-living adjustment.
   (d) The board shall provide, by rule, any details needed for the
implementation of this section.
  SEC. 23.  Section 6 of this bill shall not become operative if
either Senate Bill 399 or Senate Bill 400 of the 1999-2000 Regular
Session is enacted and becomes operative.
  SEC. 24.  Section 2.5 of this bill incorporates amendments to
Section 20391 of the Government Code proposed by both this bill and
SB 400.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2000, (2) each bill
amends Section 20391 of the Government Code, and (3) this bill is
enacted after SB 400, in which case Section 2 of this bill shall not
become operative.
  SEC. 25.  (a) Section 9.2 of this bill incorporates amendments to
Section 21363 of the Government Code proposed by both this bill and
SB 400.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2000, (2) each bill
amends Section 21363 of the Government Code, (3) SB 800 is not
enacted or as enacted does not amend that section, and (4) this bill
is enacted after SB 400, in which case Sections 9, 9.4, and 9.6 of
this bill shall not become operative.
   (b) Section 9.4 of this bill incorporates amendments to Section
21363 of the Government Code proposed by both this bill and SB 800.
It shall only become operative if (1) both bills are enacted and
become effective on or before January 1, 2000, (2) each bill amends
Section 21363 of the Government Code, (3) SB 400 is not enacted or as
enacted does not amend that section, and (4) this bill is enacted
after SB 800, in which case Sections 9, 9.2, and 9.6 of this bill
shall not become operative.
   (c) Section 9.6 of this bill incorporates amendments to Section
21363 of the Government Code proposed by this bill, SB 400, and SB
800.  It shall only become operative if (1) all three bills are
enacted and become effective on or before January 1, 2000, (2) all
three bills amend Section 21363 of the Government Code, and (3) this
bill is enacted after SB 400, and SB 800, in which case Sections 9,
9.2, and 9.4 of this bill shall not become operative.
  SEC. 26.  Section 10.5 of this bill incorporates amendments to
Section 21370 of the Government Code proposed by both this bill and
SB 800.  It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2000, (2) each bill
amends Section 21370 of the Government Code, and (3) this bill is
enacted after SB 800, in which case Section 10 of this bill shall not
become operative.
  SEC. 27.  Section 18 of this bill shall become operative only if
Senate Bill 522 of the 1999-2000 Regular Session is enacted and
becomes operative on or before January 1, 2000 and, as enacted, adds
Section 22970.2 to the Government Code.
